DCT
1:19-cv-00296
Cooltvnetworkcom Inc v. Microsoft Corp
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: CoolTVNetwork.com, Inc. (Florida)
- Defendant: Microsoft Corporation (Washington)
- Plaintiff’s Counsel: DEVLIN LAW FIRM LLC
- Case Identification: 1:19-cv-00296, D. Del., 04/05/2019
- Venue Allegations: Venue is alleged to be proper in the District of Delaware based on Defendant's operation of a retail store and regular business activities within the district.
- Core Dispute: Plaintiff alleges that Defendant’s Microsoft Mixer video game streaming service infringes a patent related to creating and using interactive, multifunctional "hot spots" within digital video and audio content.
- Technical Context: The technology concerns interactive overlays on digital media, enabling users to click on specific areas of a video or audio stream to trigger a variety of functions, such as purchasing items, linking to websites, or participating in interactive events.
- Key Procedural History: The complaint is a First Amended Complaint. It alleges Defendant had notice of the patent at least as of the filing date of the original lawsuit. The complaint notes that the accused service, Mixer, was formerly known as Beam and launched in January 2016.
Case Timeline
| Date | Event |
|---|---|
| 2000-06-08 | ’696 Patent Priority Date (Provisional Application) |
| 2016-01-05 | Accused Product Launch (Mixer, as Beam) |
| 2007-01-09 | ’696 Patent Issue Date |
| 2019-04-05 | First Amended Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
- Patent Identification: U.S. Patent No. 7,162,696, "Method and System for Creating, Using and Modifying Multifunctional Website Hot Spots," issued January 9, 2007.
The Invention Explained
- Problem Addressed: The patent addresses the perceived limitations of early hyperlinking technology, which it describes as "internally static" and not widely incorporated into video files. The problem was that clickable links ("hot spots") had predefined, unchangeable functions. (’696 Patent, col. 1:47-55).
- The Patented Solution: The invention proposes a system where "hot spots" embedded in digital media, such as a video stream, are multifunctional and dynamic. A user can select a "mode" from an "expandable menu bar" (e.g., a "shop mode" or "interact mode"), which then dictates the function of the hot spot when clicked. The function of these hot spots can also change automatically based on "time stamps" within the video, making the user experience interactive and context-sensitive. (’696 Patent, Abstract; col. 4:46-55).
- Technical Importance: The invention describes a framework for making passive video content into a fully interactive experience, combining e-commerce, social interaction, and content discovery into a single interface. (’696 Patent, col. 1:36-46).
Key Claims at a Glance
- The complaint asserts independent method claim 17. (Compl. ¶12, 21).
- The essential elements of independent claim 17 include:
- A method defining a "hot spot" with instructions from a tangible medium.
- Accessing the hot spot from a globally accessible network.
- Performing one of a plurality of predetermined functions upon selection of the hot spot.
- The hot spots reside on and are accessible from a digital video or audio file.
- The functions are selected from a "mode control" that comprises a plurality of specific modes: a shop mode, a bid mode, an interact mode, an entertainment mode, and a link mode.
- A user selects a specific mode through an "expandable graphical user interface bar."
- The specific mode "further toggles based on time stamps" in the digital video or audio file.
- The hot spots are visualized on the display (e.g., by outlines or illumination).
- The apparatus resides on and executes on a computing system.
- A user selects and activates a function by clicking the hot spot.
- The complaint does not explicitly reserve the right to assert dependent claims.
III. The Accused Instrumentality
Product Identification
- The "Accused Instrumentality" is identified as "Microsoft Mixer and related functionality." (Compl. ¶12).
Functionality and Market Context
- The complaint describes Mixer as a video game live streaming platform owned by Microsoft. (Compl. p. 7). It alleges that the platform provides features that correspond to the claimed modes, such as co-streaming with other users, adding interactive stickers and effects to a stream, creating polls in chat, and providing links for viewers to purchase the game being streamed. (Compl. ¶12, pp. 9-10). The complaint presents Mixer as a platform where "viewers and streamers come together in new ways," suggesting its market position is based on its interactive features. (Compl. p. 7).
IV. Analysis of Infringement Allegations
’696 Patent Infringement Allegations
| Claim Element (from Independent Claim 17) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| defining at least one hot spot by a communication with instructions stored on a tangible retaining medium | Defendant provides a server (tangible retaining medium) that communicates with a client device to define a hot spot. A screenshot of the Mixer interface is provided, with an "Interact Mode" button highlighted. (Compl. p. 8). | ¶21, p. 8 | col. 4:46-50 |
| accessing at least one of the hot spots from a globally accessible network | The hot spot is accessible from the internet, which the complaint alleges is a globally accessible network. This is supported by a screenshot showing the Mixer service accessed via a URL. (Compl. p. 8). | ¶21, p. 8 | col. 1:35-39 |
| performing at least one of a plurality of predetermined functions executed with the selection of each particular hot spot | Defendant provides a hot spot that performs one of several functions. A screenshot shows a "Shop Mode" where clicking a hot spot leads to a page to purchase a game. (Compl. p. 9). | ¶21, p. 9 | col. 3:4-12 |
| wherein said hot spots reside on and are accessible from a digital video or audio file | The hot spots are provided on a digital video file, specifically the live video stream on the Mixer website. A screenshot shows various alleged modes overlaid on a live stream. (Compl. p. 10). | ¶21, p. 10 | col. 4:43-46 |
| wherein said predetermined functions are selected from a mode control | Defendant provides selectable menu options that function as a mode control. A screenshot shows a user clicking a button which brings up a menu including a "Mod Toolbar." (Compl. p. 11). | ¶21, p. 11 | col. 4:51-55 |
| wherein the plurality of modes comprise a shop mode, a bid mode, an interact mode, an entertainment mode, and a link mode | Defendant provides a plurality of modes, allegedly including a shop mode (purchasing products), a bid mode (creating polls), an interact mode (chatting), an entertainment mode (stickers), and a link mode (social media links). (Compl. pp. 12-13). | ¶21, p. 12 | col. 3:5-12 |
| wherein a specific mode is selected by a user through an expandable graphical user interface bar | A user selects a mode via a graphical user interface bar, such as the chat interface. A screenshot shows the chat interface, which the complaint alleges is a GUI bar. (Compl. p. 14). | ¶21, p. 14 | col. 2:64-65 |
| wherein said specific mode further toggles based on time stamps in said digital video or digital audio file | Defendant provides a mode that toggles based on time stamps. The complaint alleges that viewers can start chatting "anytime in the streaming game," which it equates to toggling based on time. (Compl. p. 15). | ¶21, p. 14-15 | col. 4:47-51 |
| wherein said hot spots are visualized by outlines, shading, or illumination... at a predetermined area on the display | The hot spots are visualized on the display. A screenshot shows interactive elements for the "Entertainment Mode," such as stickers and effects, which are visually distinct. (Compl. p. 16). | ¶21, p. 16 | col. 2:58-63 |
| selecting and activating at least one of said predetermined functions by clicking on each particular Multifunctional Hot Spot | A user activates a function by clicking on a hot spot. A screenshot shows a "Buy" button for a game, which is alleged to be a hot spot that activates the "Shop Mode." (Compl. p. 18). | ¶21, p. 18 | col. 3:30-33 |
- Identified Points of Contention:
- Scope Questions: A central dispute may arise over whether the accused Mixer features map to the specific list of five modes recited in the claim ("shop mode, a bid mode, an interact mode, an entertainment mode, and a link mode"). For example, the court may need to decide if a user poll in a chat window constitutes a "bid mode," or if co-streaming functionality meets the claim's definition of an "interact mode."
- Technical Questions: The infringement theory for the "toggles based on time stamps" limitation raises a technical question. The complaint supports this element by stating that a viewer can chat "anytime in the streaming game" (Compl. p. 15). The court will have to determine whether this real-time user interaction is equivalent to the claimed feature of a mode that programmatically "toggles based on time stamps in said digital video or digital audio file," which suggests a pre-defined, time-based change in function rather than constant availability.
V. Key Claim Terms for Construction
The Term: "a plurality of modes comprise a shop mode, a bid mode, an interact mode, an entertainment mode, and a link mode"
Context and Importance: This term is the core of the claimed method, defining the specific multifunctional capability of the hot spots. The case's outcome may depend on whether the functions offered by Microsoft Mixer are found to be the same as this enumerated list of five modes.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification describes the modes in functional terms. For example, the bid mode "facilitates audio and/or video communication... for conducting an auction and/or receiving bids." (’696 Patent, col. 3:20-25). Plaintiff may argue that any feature that allows for receiving user input, like a poll, falls within this broad description.
- Evidence for a Narrower Interpretation: The specification also provides more specific context. Figure 3, for instance, depicts a distinct "BIDDING SYSTEM..." module (91), suggesting a more structured system than a simple chat poll. Defendant may argue the terms should be limited to the more specific embodiments shown.
The Term: "toggles based on time stamps in said digital video or digital audio file"
Context and Importance: This limitation distinguishes the invention from static hyperlinks by imbuing it with dynamic, time-sensitive behavior. Proving this element is critical to the infringement case. Practitioners may focus on this term because the complaint's evidence appears to equate constant availability with time-based toggling.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The patent states that the "function of hot spots may vary during the running of a digital media file based on time stamps or other parameters." (’696 Patent, col. 4:47-49). Plaintiff could argue this encompasses any change in functionality that occurs during the video playback.
- Evidence for a Narrower Interpretation: The language specifies toggling based on "time stamps in said digital video or digital audio file," which suggests a programmatic link to the media's timeline (e.g., a function becomes active only between the 1:05 and 1:30 marks of a video). Defendant may argue this requires more than just a feature being available for use at any time during a stream.
VI. Other Allegations
- Indirect Infringement: The complaint alleges induced infringement under 35 U.S.C. § 271(b). It asserts that Defendant intends for users to infringe by providing the Mixer platform and "providing instruction on how to use the Accused Instrumentalities' functionality." (Compl. ¶13, 17).
- Willful Infringement: The complaint alleges that Defendant has knowledge of the ’696 patent "at least as of the date this lawsuit was filed" and that its continued infringement is willful. (Compl. ¶15, 18). This allegation appears to be based on post-suit conduct.
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the specific list of five modes recited in Claim 17 ("shop mode, a bid mode, an interact mode, an entertainment mode, and a link mode") be construed to read on the features of the accused Mixer service, such as chat polls, co-streaming, and interactive stickers? The resolution will likely depend on the construction of these terms.
- A key evidentiary question will be one of functional operation: does the accused platform's functionality meet the "toggles based on time stamps" limitation? The case may turn on whether Plaintiff can produce evidence that Mixer's modes programmatically change according to predefined time codes within the video stream, as opposed to simply being available for user interaction in real-time.